Environmental Management Review of Dell Case Study

Environmental Management Review of Dell - Case Study Example The author of this research paper begins with the history of the company. Michael Dell founded the company when he was a 19 year old student at the University of Texas in Austin. He used a basic model: selling PCs to the final customer and built them to users’ specifications. Dell Computer still does it today, the so-called build-to-order scheme, although with some modifications. He started with telephone sales using IBM compatible PCs, and then assembling and selling his own brand. This model provided a 24-hour hotline for complaints and guaranteed immediate shipment of replacement parts, that is, 24- to 48-hour shipment. The improvements in design and production processes have helped Dell cut the estimated production cycle time for a desktop computer – from beginning of the build process to placement on a delivery truck – to 7 hours (McWilliams, 1997, cited in Kraemer et al, 1999:11). At its newest Austin plant, named Metri 12, sometimes a PC can be built, software installed and tested, and everything packed in a box for shipping within 5 hours (Ramstad, 1997, cited in Kraemer, 5). The customization that occurs in production is carried over to sales and service. For instance, Dell installs custom software on the machines that it builds for corporate customers. It also maintains an inventory of its customers. It seeks to lower the total cost of ownership for its corporate customers by helping them manage their PC inventories and offering technologies that reduce the cost of hardware and software maintenance in networks. (Dell outlines strategy, 1997). The company applies the principles of resource savings through the following strategies: Recycling Dell recycles unwanted Dell-branded products for free, and reduces impact to the environment through selling refurbished system. This saves money for the customer and lessens the amount of new materials used, while still keeping warranties from Dell. Old PCs, printers, software, modems and other such devices considered separate components, can be donated to charity organizations and foundations, through the company. The National Cristina Foundation and Dell have partnered to provide computer technology to people with disabilities, students at risk and economically disadvantaged persons. Combined with training, this program enables them to lead more productive lives. (Dell website) Dell designs and engineers its products to prevent pollution and conserve natural resources throughout the system's life, achieving environmental responsiveness in tandem with sound business management. Reducing the environmental impact of Dell products begins at the design stage as cross-functional product design teams work to make thoughtful and effective decisions that will have positive environmental results throughout the equipment's life cycle. (Dell website: Environment) Environmental responsibility goals Recycle or reuse 99 percent of waste from manufacturing operations by 2012. Further reduce carbon intensity by 15 percent by 2012 (based on 2006 levels). Improve average score from the LEED (Leadership in Energy and Environmental Design) Green Building Rating System by 2012. Design for the environment Dell pledged to eliminate brominated flame retardants and polyvinyl chloride from new product designs by 2009 that will force widespread changes in